Market Reports

Daily Market Report (29 May 2023)
Daily Market Report (29 May 2023)
  • Wall Street closed firmer as traders turned optimistic that a deal would be reached for the US debt ceiling soon.
  • As a result, the DJI Average rose 329 points while the Nasdaq added 278 points as the US 10-year yield eased marginally to 3.81%.
  • Hong Kong market was closed for Buddha’s Birthday last Friday.
  • On the home front, the FBM KLCI maintained its lackluster performance to end on a flat note attributed to some late buying activities on the Telco and Utilities counters.
  • The local bourse remained stuck in a consolidation phase despite decent earnings from the Banks of late.
  • Investors continued to be sidelined despite the index currently hovering at a 2-month low level.
  • Nonetheless, latest news that a tentative deal has been reached to avoid a US default may spur some buying activities within the regional markets hence may see some accumulation of stocks domestically.
  • Thus, we expect the index to trend within the 1,400-1,410 range today. Meanwhile, crude palm oil price improved slightly due to El Nino that could affect production.
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Daily Market Report (26 May 2023)
Daily Market Report (26 May 2023)
  • It was another interesting day on Wall Street as traders were split between the US debt ceiling negotiations which is still in progress and corporate earnings.
  • Reflecting the approaching US default deadline, the DJI Average fell 35 points while the Nasdaq jumped by 214 points buoyed by solid earnings from Nvidia that spurred other semiconductor stocks higher as well.
  • Meanwhile, the US 10-year yield edged higher at 3.823%.
  • Over in Hong Kong, equities slumped 369 points or a YTD low as sentiment remain affected by the US debt ceiling impasse coupled with weak results from Lenovo and Xpeng amid a slower recovery in China.
  • Back home, the FBM KLCI continued with its downtrend and is currently hovering just above the 1,400 level.
  • The highly anticipated bargain hunting did not occur as investors remain sidelined spooked by the regional weaknesses.
  • Nonetheless, we reckon buying activities to emerge if the index dips to around the 1,390 mark.
  • Thus, for today we expect the index to trend within the 1,400-1,410 range with the Banks ripe for pickings.
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Daily Market Report (25 May 2023)
Daily Market Report (25 May 2023)
  • Wall Street tumbled as sentiment remains stressed amid the ongoing negotiations on the US debt ceiling with no signs of an agreement soon.
  • As such, the DJI Average declined by 256 points while the Nasdaq fell 77 points as the US 10-year yield jumped to a 3-month high at 3.744%.
  • In Hong Kong, the HSI lost 315 points to a 2-month low as traders remain spooked by the US debt ceiling impasse coupled with the weak Chinese markets.
  • Headwinds on tech stocks further pressured the broader sector, in particular news of Alibaba laying off 7% of its work force.
  • On the domestic front, the FBM KLCI remained stuck within a narrow trading range before ending below the 1,410 level in the absence of fresh catalysts.
  • Nonetheless, we are hopeful that bargain hunting activities to emerge, especially on the Banks as we expect earnings from the Banks over the next few days to remain decent.
  • Despite the prevailing weak market undertone, we anticipate the index to possibly trend within the 1,410-1420 range today.
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Daily Market Report (24 May 2023)
Daily Market Report (24 May 2023)
  •  Wall Street fell as discussion on the US debt ceiling continues to drag on without any outcome in sight.
  • As a result, the DJI Average lost 231 points while the Nasdaq declined by 160 points notwithstanding the US 10-year yield closed lower at 3.698%.
  • Similarly, Hong Kong stocks also ended lower as the HSI declined by 247 points as the protracted debt ceiling negotiations and heightening tension between China and the US continue to weigh on sentiment.
  • Amid the weakness, pharmaceutical stocks surged as the Chinese authorities said that more vaccines are made available to curb the new Covid wave.
  • Back home, the FBM KLCI closed lower in the absence of any bargain hunting activities. The sell-down on heavyweights was broad-based as sentiment was affected by regional weaknesses.
  • For today, we reckon the index to trend within the 1,405-1,415 range as investors may stay side-lined until the US resolves its debt ceiling woes.
  • Meanwhile, strong demand drove crude oil prices higher as the Brent crude climbed closer to US$78/barrel.
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Daily Market Report (23 May 2023)
Daily Market Report (23 May 2023)
  • US stocks closed on a mixed note amid a fresh round of negotiations on the US debt ceiling with the deadline looming in 2 weeks.
  • While the DJI Average lost 140 points, the Nasdaq added 63 points despite the US 10-year yield inching higher at 3.719%.
  • Over in Hong Kong, equities gained as the HSI rebounded by 228 points spurred by a surge in tech stocks following Beijing’s ban on Micron Technology that propel a rally for the Chinese chip makers thus within the Tech broader sector.
  • On the home front, the FBM KLCI fell to below the 1,420 mark primarily due to the selling on selective banking heavyweights.
  • Nonetheless, we reckon bargain hunting on the banks may surface today as we deem the recent sell-down on the sector may have been overdone.
  • As such, we reckon the index to trend higher today possibly trending between the 1,420-1,430 range today.
  • Another interesting development is that, despite recent slump in CPO futures, Plantation stocks remained rather resilient attributed to continuous buying support.
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